The Korean government passed a law to decrease the corporate tax rate in Korea, however, the government has backpedaled and has increased the corporate tax rate for companies with earnings over KRW 20bil through a recent amendment to the Korean corporate tax law. We receive many requests from clients to compare the corporate taxes, general investment environment, and benefits in doing business in free trade zones in Asian countries in order to determine the most feasible location for a regional headquarters. Increasingly, Korea is becoming less competitive in these type comparisons in most areas that concern multinational companies.
TAX BRACKETS TAX RATE
Under KRW 200mil 11%
KRW 200 mil to 20bil 22%
Over KRW 20 bil 24.2%
Recent posts on Korean Tax Law:
- Korea Tax Tribunal on the Adjustment of Value of Imported Goods and Transfer Pricing
- Tax Qualified Mergers in Korea
- Korean Individual Income Tax Rates: Incomes Taxes Rates on the Rise in Korea
- Korean Corporate Tax Rates: Corporate Taxes to Rise in Korea
- Korea Islamic Bond Tax Bill is Doomed because of Fundamentalist Christians
- Tax Exempt Foreign-Denominated Bonds in Korea Coming to an End for Holders with Offices in Korea
IPG will be updating the readers of The Korean Law Blog, The Asian Law Blog and The China Law & Business Blog on updates to China, Bangladesh, Cambodia, Korea the Philippines, Vietnam tax law over the next couple of weeks on IPG’s blogs.
- 17 Percent Flat Tax for Foreign Nationals Residing in Korea: Korean Tax Amendments for 2013
- Korean Tax Laws on Entertainment Companies in Korea: Overseas Tax Deductions
- Special 20% Consumption Tax for Designer Bags Bought in Korea Suspended until 2014
- Tax Breaks for Korean Landlords: Real Estate Taxation Basics
- Korean Tax Law Amendment Press Release by Korean Government
- Korean Tax Risk of Foreign Corporation Deemed “Actual Business Management Locale” within Korea: Korea Tax Law Basics
- Korean National Tax Service Tax Law News Release to Foreign Corporate Taxpayers: Korean Tax Law Updates
- Filing your U.S. Taxes as an Expat in Korea: Foreign Earned Income Tax Exclusion
- Tax Liability of Controlling Shareholders in a Korean Company: Tax Law Updates
- Can a Foreign Company be Deemed a Domestic Company for Tax Purposes and Taxed on Worldwide Income?